MONTREAL – Videotron and Rogers say they will pool their efforts to build and operate a shared LTE wireless network in Quebec and the Ottawa region.
LTE is a standard for wireless communication of high-speed data for mobile phones and data terminals.
The companies say they have entered a 20-year agreement to share the cost of deploying and operating the shared LTE network.
They say it will deliver capital and operating savings, allowing both companies to reinvest in their customers and networks.
Videotron and Rogers will maintain their business independence, including their product and service portfolios, billing systems and customer data.
In addition to increasing network performance, they say it will expand mobile coverage more quickly in rural Quebec, helping to reduce the urban-rural digital divide.
As part of the overall agreement, Rogers and Videotron will each provide each other with services for which Rogers will receive $200 million and Videotron $93 million, payable over a period of 10 years.
In addition to the network sharing agreement, Videotron and Rogers have also come to an agreement regarding Videotron’s unused advanced wireless services spectrum in the Greater Toronto Area.
Videotron will have the option to transfer its Toronto spectrum licence to Rogers, subject to regulatory approvals, beginning January 1, 2014 for a price of $180 million.